China’s Industrial Profits rose 3.5% year-on-year in the first half of 2024, according to the National Bureau of Statistics (NBS). This increase follows a 3.4% rise for January-May.
The data covers industrial firms with annual revenues of at least 20 million yuan ($2.75 million) from their main operations. This growth in industrial profits indicates some resilience in China’s economy, despite facing challenges such as sluggish domestic demand and a protracted property downturn.
However, it’s important to note that the overall economic growth in China has been slower than expected in the second quarter of 2024, reflecting ongoing economic challenges.
Overall China’s economic growth in H1 of 2024
China’s overall economic growth in the first half (H1) of 2024 was 5.0%, according to the National Bureau of Statistics (NBS). This aligns with the economic target set at the beginning of the year.
While the growth rate moderated to 4.7% in Q2 compared to 5.3% in Q1, the overall H1 figure indicates that China’s economy remains resilient despite challenges such as:
- Sluggish domestic demand: Consumer spending hasn’t rebounded as strongly as expected after the lifting of COVID-19 restrictions.
- Property downturn: The real estate sector, a significant driver of China’s economy, continues to face difficulties.
- External uncertainties: Global economic slowdown and geopolitical tensions have also impacted China’s economic outlook.
However, there were some positive aspects to the H1 economic performance:
- Robust manufacturing: Key manufacturing sectors like 3D printing equipment, new energy vehicles, and integrated circuit products showed significant growth.
- Strong foreign trade: Exports grew by 6.9% in yuan-denominated terms in the first six months, indicating resilience in external demand.
- Service sector growth: The service sector also contributed to overall growth, with a 4.6% increase in value added.
Overall, China’s economic growth in H1 2024 was in line with expectations, demonstrating the country’s ability to navigate challenges and maintain steady progress towards its development goals. However, the government is likely to continue implementing policies to stimulate domestic demand and address the ongoing property downturn.